Yen Bulls Are Pushing Back Bets on BOJ Tailwind to the Summer
- FX watchers see pressure continuing on yen after BOJ meeting
- Yen weakness most pronounced against its European peers
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Yen bulls are bracing for a period of weakness in the currency until speculation returns for a Bank of Japan policy tweak at its June or July meetings.
The Japanese currency has fallen to a two-month low against the greenback in the aftermath of the BOJ’s decision to keep its main stimulus measures unchanged and options signal about a 50-50 chance it will touch 140 per dollar by the end of July. Against the euro it has tumbled to the lowest since 2008, with a dovish BOJ contrasting with a European Central Bank expected to keep tightening for the time being.